Deloitte predicts 60% of connected devices will be bought for enterprise and industrial use, not consumer… yet.
Global shipments of Internet of Things (IoT) devices will reach 1 billion this year, 60% of which will be bought for enterprise and industry use, rather than consumers, a new Deloitte study reveals. In its 14th annual “Technology, Media & Telecommunications (TMT) Predictions” report, the research firm explored what it believes to be the realms that will have the greatest impact in 2015. Among those included the IoT, drones, 3D printing and nanosats, each areas that are heavily enabled by Atmel embedded technology.
“We are entering an extraordinary period where consumer technologies are finding increased adoption in the enterprise space. Our data indicates an exponential increase in interest in the IoT by the enterprise, which could have a profound impact on the way business is conducted,” said Eric Openshaw, Deloitte Vice Chairman. “Strong enterprise adoption of the IoT could prove to be a huge opportunity for both vendors and retail consumers alike. The amount of data we will see generated from connected devices will pave the way to measure interactions in a way not witnessed before. And, as a result, will allow organizations to understand customer behaviors and purchase patterns in a whole new light.”
IoT-specific hardware will be worth $10 billion, with consumers’ appetites for controlling their heating, lights and appliances will jump. However, the big story will be around enterprise service and industrial area, which will be valued at approximately $70 billion. The company also anticipates that global smartphone sales will surpass 1 billion for the first time this year, with screen size, speed, storage, software and design being key drivers of growth.
“We expect the pendulum of technology adoption to swing back to the enterprise with company led adoption of wearables, 3D printing, drones and the Internet of Things meeting more needs and generating higher sales for business than consumers,” TMT Risk Services Partner Dennis Moth added. “Although the focus may well be on consumer take-up — think Bluetooth-enabled roller-doors, white goods, etc. — the real value [at this moment] will be in the savings made by industry and business, with smart factories, smart homes, eHealth and telematics.”
The report finds that in 2015, enterprises will lead purchases of 3D printing and drones, signaling a shift away from the consumerization of IT predominant in the last decade that spiked with consumers’ moderate investment in wearable technology such as smart glasses. This year, drones will have multiple industrial and civil government applications, as sales of non-military UAVs will near 300,000 units and drive the installed base to over a million.
Meanwhile, over 500 nanosatellites are expected to be in orbit by year-end. According to Deloitte, nanosats are attractive for many reasons: they are cheaper than conventional satellites, lighter, easier to build and test, and easier to launch. Although increasingly capable of more complex tasks, they are likely to be additive to the existing large satellite market, and not replace it.
Turning its attention to mobile payments, Deloitte predicted that 2015 will be a watershed for the use of contactless technologies like NFC. In fact, by the end of the year, 30 million NFC-capable phones will make at least one in-store payment per month. Deloitte Lead Telecoms Partner Ed Marsden notes, “This technology is likely to exist alongside other means of payments for some time yet.”
In addition, the research firm highlights that the number of homes with broadband Internet will rise by about 2% to 725 million over the next 12 months, with average broadband speeds in most countries increasing by 20%. The gap between those with access to the fastest broadband speeds and those on basic speeds will continue to widen in 2015, providing a varied experience from home to home, especially for high bandwidth applications like streaming video.
Interested in learning more? You can explore each of Deloitte’s TMT predictions in depth here.